Growing ADB-PNG partnership supports service delivery

ADB

The Asian Development Bank (ADB) and the Government of Papua New Guinea’s growing partnership is based on improvements in service delivery capacity, a forum was told in Port Moresby last Friday.

The event provided updates on ADB projects and programs in PNG and discussed potential challenges and opportunities that will be faced by the PNG Government and its development partners in 2014.

“ADB’s activities in PNG have grown considerably over recent years. ADB is now PNG’s second largest development partner with a portfolio of $1.1 billion with 22 active loans, 17 grants and 2 private sector loan and equity operations,” said Noriko Ogawa, Deputy Director General of ADB’s Pacific Department.

The forum was told that ADB assistance is supporting the PNG Government’s growing investment in transport and renewable energy infrastructure and is complemented by targeted interventions to support rural health delivery, public financial management, microfinance and private sector development.

With infrastructure recording a 46% increase in funding in the 2014 Budget, the real challenge for the next year will be one of implementation and delivery, the ADB said. In response to these implementation challenges, ADB is working with the Government to deliver its support through larger and longer-term approaches that help create predictable sources of finance for executing agencies, encourages long-term investment planning, supports higher quality project preparation and provides partner agencies with resources to recruit and build-up local staff capacity over an extended period.

As of November 2013, disbursements for ADB supported projects in PNG totaled $152.3 million, up from $91.7 million in 2012.

Papua New Guinea joined ADB in 1971. It is ADB's largest partner in the Pacific in terms of loans for public and private sector development.

ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth and regional integration. Established in 1966, it is owned by 67 members – 48 from the region. In 2012, ADB assistance totaled $21.6 billion, including cofinancing of $8.3 billion.

PNG a nation with huge and diverse energy sources, low access to electricity

Lighting up 70 percent of PNG households by 2030 is challenging, but achievable

World Bank/Asian Development Bank

Deliberations last Thursday at the stakeholder’s consultation workshop on the guiding principles for the Papua New Guinea national plan (NEROP) to electrify 70 percent of households by 2030, and consultations on the electricity industry ‘rules of engagement, under the Third Party Access Code and the Grid Code, ended on a positive note that these can be achieved.

The Third Party Access Code provides the terms and rules for private generators to connect to Power PNG Limited (PPL) transmission systems and sell power to PPL and other customers. The Grid Code specifies a set of technical rules that will govern the connection to, use and operation of the country’s transmission system, and sets performance and safety standards for transmission equipment and operation.

Participants at the consultation workshop unanimously acknowledged that PNG has broad and diverse energy options that if harnessed through the right approach and attitude, and with the right cost and investment structures in place, the goal to light up rural and remote parts of the country that had been in in dark for so long is possible.

Papua New Guinea Prime Minister, Peter O’Neill, when opening the consultation workshop on the National Electrification Rollout Plan (NEROP) Wednesday, admitted that the country had done very well on the energy sector in the last 40 years, but said it is time to turn things around.

The Government reiterated the importance of encouraging the participation of the private sector in delivering the vitally needed investments to deliver a reliable and high-quality electricity supply to all in PNG.

The workshop’s keynote speaker was Eddy Njoroge, a former Managing Director and CEO of Kenya Electricity Generating Company who oversaw key developments that now result in Kenya providing electricity connectivity from 8 percent in 2003 to 26 percent of its households in less than 10 years.

Sixty percent of households in Kenya have access to electricity, and the country is working to achieve a 100% electricity access rate by 2020.

The attendees and relevant sector institutions present generally voiced strong support on the way forward in respect of the proposed organizing principles to guide the preparation of the NEROP; as well as the proposed scope and detailed design of NEROP’s operational pillars required for implementation.

The attendees also welcomed the introduction of the Third Party Access Code and the Grid Code, which encourage private sector investment in the industry by setting out the rules for connecting to and use of the power grid by new generators and which, together, will bring about greater clarity and transparency for investment decisions by private sector participants and for third parties other than PPL wishing to supply customers.

Several other presentations were made on areas of interest and the kinds of options that can be considered for successfully rolling out the NEROP, including the options for sustainable financing lessons learnt from the 20 year experience of the State Government of Queensland.

Development partners, including the World Bank Group and the Asian Development Bank (ADB) are providing support to Government in the areas of policy development, capacity building, and improvement of the necessary generation and transmission infrastructure.

World Bank Director for Sustainable Energy, Vijay Iyer highlighted the importance for the Papua New Guinea people and government to own and drive the program together, adding that development partners like the World Bank Group and ADB stand ready to support national efforts.

Mr. Iyer congratulated the PNG Government for putting in place important policies for energy development and for strongly supporting electricity issues which will have huge development and economic impacts in the areas of education and health, especially for women and children.

He said there is strong evidence to show countries that moved up the energy ladder have improved outcomes in living standards.

ADB Country Director for Papua New Guinea Marcelo Minc said the active participation of attendees at the workshop reflected the high profile the energy sector has in the development of Papua New Guinea’s economy.

“As ADB’s activities in Papua New Guinea scale up, we look forward to expanding our support to the energy sector in close coordination with our development partners,” said Mr Minc.

Mr Minc also highlighted the importance of government ownership of NEROP which will deliver affordable, reliable energy to the people of Papua New Guinea. 

A communique summarising workshop discussions and outline a timeline for immediate next steps for implementing the NEROP, the Third Party Access Code and the Grid Code was released at the end of the three days consultation. It captures discussions and feedback from participants representing PNG’s national and provincial governments, civil society groups, development organizations, private sector, and the industry on key areas for the development and implementation of guiding principles for the NEROP.

US expert: PNG has a long way to go in battle against corruption

By MALUM NALU

Papua New Guinea has a long way to go in the battle against corruption, according to a visiting American anti-corruption expert, Robert Cerasoli.

Cerasoli, an expert in anti-corruption, rule of law, ethics, and has experience serving as inspector general in the US government, said this during a public lecture at the Institute of Public Administration in Port Moresby yesterday on the topic "What does it mean to be an Ethical Public Servant?".

Robert Cerasoli

The objective was to discuss the importance of ethics and professionalism in public service and highlight the role civil servants play in advancing democracy at a crucial time for PNG.

“Resources to achieve the goals (of government) are limited,” he said.

“Public servants are stewards of these resources.

“And they must ensure that these resources are used to achieve the goals effectively and efficiently as possible.

“They are the ones to prevent fraud, misuse and squandering of the resources of their government, the squandering of resources of Papua New Guinea.”

Cerasoli said over the last few days he had talked to several people in government and media, and the general perception was that corruption was a problem in the country.

“And, like many nations that I go to in Africa, the people say, ‘there is a culture of corruption’.

“Well, I don’t believe that, I don’t think you believe that.

“I think it’s a more-complicated story.

“I don’t think the people here, by nature, are corrupt.

“It doesn’t work like that.

“If we believe that we have the original sin of corruption in us all, then all is lost.

“So what does that mean? Where do we go from here? How do you think corruption starts? How has it become so insidious?

“Many people, public administrators in the field, have a difficult time defining corruption.”

Top Australian radio jock visits PNG

By MALUM NALU

A top Australian radio presenter who has close links with Papua New Guinea is impressed at relations between the two countries.

Radio Australia breakfast show presenter Phillip Kafcaloudes, who is here for the 40^th anniversary of National Broadcasting Commission (NBC), said he was surprised at the amount of goodwill Papua New Guineans showed towards Australia.

Kafcaloudes interviewing PNG’s oldest surviving journalist Biga Lebasi outside The National office on Wednesday.-Picture by MALUM NALU

“I would have thought that there wasn’t good will towards Australia,” he said.

“Look at sports here - rugby league, rugby union, cricket, netball, even AFL and soccer - all the sports that Australia loves, PNG loves.

“What I hear also is that if Australia is playing some other country, people go for Australia.

“I’m really surprised by that.

“I thought they’d say ‘we were a colony of yours, get out and leave us alone.”

“But everywhere, there seems to be goodwill towards Australia.”

Kafcaloudes said despite all the negativity about PNG, the people were completely different.

 “On the surface you see people who are remarkably happy, given all these other issues,” he said.

“I find that very surprising, but that’s probably the perception we get overseas that PNG is dangerous, or that PNG in general has a real corruption issue.

“The fact that people are as happy as they seem to be and are welcoming says a lot about PNG people, despite all the problems they’ve got.”

This is Kafcaloloudes' second time in PNG, having first been here 11 years ago as a journalism trainer at Divine Word University in Madang.

He has joined in celebrations this week at NBC including being a guest presenter and interviewing some of the famous voices like current managing director Memafu Kapera and Justin Kili.

 “It’s fascinating to go into the same studios that they had 40 years ago,” Kafcaloudes said,

“Equipment is much newer but the place is the same building: the ABC.

“I was talking to the managing director of the NBC, losing money

“From what I saw, the presenters were very lively, were very interested, I was very impressed.

“And I was very impressed with the entire media organisations.

“I know there are issues with training of journalists, it’s hard, especially when there was so much training 30 years ago or so.

“I’ve been reading the papers and the quality and the freedom of the media is there.

“It’s good, very good.”

Prime Minister satisfied with progress in fight against corruption

This is the Prime Minister's statement in full so you are entitled to bellieve it or not:

Prime Minister Peter O’Neill said yesterday he was satisfied that Papua New Guinea has made significant progress in the fight against corruption.

“I’m pleased with what we have achieved, in the fight to stem corruption, since 2011. Much of the stride we have made may not be noticeable, and may not please everyone, but that will not deter us from our commitment,” Mr O’Neill said.

He said high investor confidence, sound management of the economy, building infrastructure for better service delivery, and improving business environment were the hallmarks of a country that is dealing decisively with its development issues, including fighting corruption.

“Against this backdrop, I must say that I am disappointed with PNG’s rating on the Corruption Perceptions Index 2013. Obviously those who influence this perception rating may have a certain bias in the way our government has addressed some issues in the last 12 months.

“But let me assure the people of Papua New Guinea that the government will take this rating as an encouragement to do more to fight this evil of corruption.”

Since being elected Prime Minister, the government under O’Neill’s leadership has:

·      Approved the National Anti-Corruption Strategy which has won the approval of the United Nations;

·     Set up a National Anti-Corruption Task Force which is now implementing the Strategy;

·     Set up Task Force SWEEP headed by Sam Koim which is investigating and prosecuting corrupt practices in the public sector;

·     ordered a high level investigation into massive fraud and corruption in the Finance Department, which has resulted in a clean out of the department, and prosecution of certain individuals involved;

·     Introduced the ICAC Bill in Parliament which passed the first vote with an overwhelming majority; supporting legislations to protect whistle blowers and ensure freedom of information will be introduced when the ICAC Bill faces the second vote next year; 

·     Ordered a review of certain contracts with prices which were deemed as excessive;

·     Frozen all illegally/improperly acquired land leases (SABLs) following a commission of inquiry, and appointing a task force to review the process; and

·     Reviewed the entire public procurement process with the inclusion of independent assessors, for the first time, to allow more transparency and accountability in the process, and speed up delivery time.

The Prime Minister said: “These are some of the measures we have taken as a government to improve governance, and enhance transparency and accountability in our systems and processes. No-one can accuse us of doing nothing.”

He said there was a lot of debate and discussions in the mainstream and social media about corruption.

“The use of these forums for discussions and debates is healthy. Most of these discussions are sensible and useful in the cause, while some are baseless innuendos which we all can do without.

“It is important to remember that fighting corruption is not just the government’s business; it’s everyone’s business. We all have a role to play to rid our country of corruption,” the Prime Minister said.